Montevideo is the capital and largest city of Uruguay. According to the 2011 census, the city proper has a population of 1,319,108 in an are…Montevideo is the capital and largest city of Uruguay. According to the 2011 census, the city proper has a population of 1,319,108 in an area of 201 square kilometers. Montevideo is situated on the southern coast of the country, on the northeastern bank of the Río de la Plata.